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tv   World Business Report  BBC News  April 18, 2017 5:30am-5:46am BST

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this is bbc news. the headlines: a senior member of north korea's government has warned that his country is prepared to engage in what he called "all—out war" from day one, if the united states took military action over pyongyang's nuclear programme. a nationwide manhunt is underway in the us for the suspect who killed an elderly man in ohio and posted a video of the crime on facebook. the man, steve stephens, later confessed in another facebook video and went on the run. one of the frontrunners in the french presidential election, marine le pen, has said she would suspend all immigration to the country if she is elected president. she said she wanted to stop what she called a mad situation. the conservation charity wwf is warning that almost half of the world heritage sites designated for their importance to nature are threatened by the illegal wildlife trade. it's worth an estimated $19 billion. now for the latest financial news with sally bundock
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and world business report. a "free and fair" trade relationship — that's the message from the us as mike pence continues his tour of asia. but what does that mean forjapan? we get an expert view. and banking on reform from president trump, but as yet no news. goldman sachs and bank of america are the latest to reveal their earnings. i'm sally bundock. in a minute, we'll cross over
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to asia to hear about a potential takeover of one of britain's most popular breakfast cereals. but first, as we speak, the us vice—president mike pence is en route to tokyo where he's meeting with the japanese prime minister, shinzo abe. in recent weeks, president trump appears to have softened his stance on trade after taking aim at some of the world's biggest exporters during his election campaign. in the case of japan it has been accused of manipulating its currency for trade advantage, something the japanese have denied. and the trump administration is hoping to reverse the trade deficit between the two nations which last year stood at around $69 billion. when it comes to their trade relationship, the car industry is key — japan currently exports more than a million cars to the us every year. while the us only sells around
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10,000 vehicles a year injapan. that is something trump wants to change. and his administration is keen to strike what it calls a "balanced and fair" trade agreement with japan, which has been given added urgency by america's decision to withdraw from the tra ns—pacific partnership trade deal. so we will have a discussion with out on an expert in world business report, coming up later. ken 0deluga is market analyst at city index. quite interesting, mike pence on his tour of asia. the geopolitics is com pletely tour of asia. the geopolitics is completely dominating, which will continue today in japan, completely dominating, which will continue today injapan, despite trade supposed to be one of the most important issues. —— despite the fa ct important issues. —— despite the fact trade was supposed to be. yes, just hours before these talks got under way, the treasury secretary provided a more nuanced take on the
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administration's in view of the strong dollar, secretary mnuchin saying that over the longer term a strong dollar is actually a positive thing. if you juxtapose that with the idea that mike pence is going to meet japanese officials, and the idea that mike pence is going to meetjapanese officials, and of course the prime minister, a country which the administration has suggested could be on the verge of being a currency manipulator, clearly we think that is significant. also, as well, mike pence was in favour of the tpp. he was quite an advocate for it. yes, not just was quite an advocate for it. yes, notjust tpp. if was quite an advocate for it. yes, not just tpp. if you was quite an advocate for it. yes, notjust tpp. if you look into mike pence's background, his history, his voting record, he has consistently been an advocate of free trade. so thatis been an advocate of free trade. so that is obviously a little bit of a contradiction. he supported tpp very specifically and his supporters nafta. —— he supported. he is not
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really the person to send to drastically rearrange existing trade agreements. but we know that when it comes to president trump himself, he has been fairly vocal about various issues. the car industry is one of them. there was a lot of lost before he became president about his views that the japanese do not buy more ca rs that the japanese do not buy more cars made in america. —— lot of bluster. although japan cars made in america. —— lot of bluster. althouthapan does have some huge factories in the us, it employs a lot of americans. yes, the united states would read their biggest export market in the year to march. a 2.8% rise in car sales, no letu p. march. a 2.8% rise in car sales, no letup. a big installed a soft production in the united states as well. —— big installed base of production. so we will not get any specific news about trade between the two countries after this visit, but it is important in setting the
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foundations for future discussions. absolutely. donald trump has made clear that that is his intention, to rebalance existing trade agreements. the simple fact is that on this occasion there are more important factors to discuss. canon, thank you for coming in this morning. —— ken, thank you. we will be across this story all morning, and when we get more news we will update you. as mentioned earlier, donald trump has vowed to provide a boost to the country's car industry. but this isn't the only one hoping to benefit from policy changes made by the new administration. last week, some of the biggest players on wall street reported a strong set of results, but is the winning streak set to continue? samira hussain has the details. last week both jp morgan last week bothjp morgan chase and citigroup reported earnings, and on tuesday we will hear from bank of merit and goldman sachs. there are two things that will boost earnings for bank of america. stronger
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trading, thanks to record highs seen on us markets, and the higher interest rates, which means that the bank will have made more money from lending. goldman sachs will also see a boost to their earnings, because of strong bond trading and investment banking. but really, what investors will want to hear from both banks is an update on the likelihood of any changes to banking rules. the election of president trump fuelled a big rally in banking stocks on the expectation that he would roll back some of the rules known as dodd—frank. recently banking stocks have been pulling back, after not being able to repeal and replace 0bamacare, there were worries that some of the promises made by the company stretch and may not end up happening. —— made by the trump administration. uk cereal company weetabix is expected to be sold to us firm post holdings for $1.8 billion, according to the financial times. weetabix has been widely reported as being up for sale by its chinese owner bright food, which bought a 60% stake in 2012. rico hizon has been
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following the story for us from our asia business hub in singapore. who else to talk to about this? nice to see you, rico. do you enjoy weetabix cereal, sally? yes, i love cereal, ie it weetabix all the time. so what is going on? unfortunately it is not as popular in china, despite being an iconic brand for cereals. bright food, which owns a majority of weetabix, has been having a difficult time marketing the product to a more than a billion strong the product to a more than a billion strong consumer the product to a more than a billion strong consumer base. the chinese food firm is currently struggling to build significant market share on the mainland. that is partly down to chinese tastes, as consumers they
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are generally prefer a hot, rice —based breakfast, rather than a cold cereal. bright's acquisition was the largest by a chinese company in 2012. if you look at the numbers it may look positive for weetabix, because they doubled their sales in china in 2016. but it isn't enough, because they are coming off a low base. the uk still accounts for the majority of its sales. as for the potential buyer, post holdings, it is the third—largest cereal firm in america and owns brands including goldman crisp and coca pebbles. at post— mouldings may have some rivals for weetabix. some of the biggest names in food, including the uk's associated british foods and italy's barillia have been named as possible suitors. we will know soon who will be the winnerfor the suitors. we will know soon who will be the winner for the city % stake of right foods in weetabix. —— 60%
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sta ke of right foods in weetabix. —— 60% stake of bright foods. netflix has grown its user base at a slower rate than previously expected in the first three months of the year. the streaming giant added 4.95 million new subscribers in the quarter, fewer than the 5.2 million it had forecast. the firm says the delay of its house of cards series was the main reason for the lower—than—expected subscriber growth. uber drivers in new york may soon be able to earn tips thanks to a new proposal. regulators have announced plans aimed at forcing all cab companies that take payment via credit card to offer a tipping option. rival services such as lyft already offer a tipping option — however, uber has since resisted such a move. let's look at the markets. today everybody is lack across the world, having had a long bank holiday weekend. —— is back. wall street was open on monday, but it was a short today than usual with lighter trade.
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next action in asia. —— mixed. i will show you the us very quickly, so will show you the us very quickly, so you will show you the us very quickly, so you can see how will show you the us very quickly, so you can see how the day ended. that helped today's session in east asia. i will see you soon. people in newcastle—upon—tyne are being asked if they support plans to hand over their local parks to a charitable trust. the city council says the idea is being proposed because of budget cuts. it's believed to be the first local authority in england and wales to make such plans. 0ur correspondent fiona trott reports. they are the places we treasure, quiet corners of the very town or city at the heart of our community. some of them for over a century. but they need to be maintained and here in newcastle the council is running out of money. they say the park
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budget has been cut by 90% over the past seven years. the solution? it could be this, a parks charity like the one here in milton keynes, which looks after some 5000 acres of greenery. they say it works because they are not competing for money against other services. here in newcastle, it would mean 33 green spaces would be handed over to a charitable trust, along with some 50 allotments. it would be responsible for the day to day management, and attracting new investment. people have already expressed their views on the plans. some say they do not wa nt on the plans. some say they do not want parks falling into a state of disrepair, but they do not want to be charged for using any part of them either, something they fear might happen if green spaces are taken out of the council's ounce. the public consultation ends on friday. the council has been asked to share its findings with other local authorities, in case they want to follow their example. the duke of cambridge says the british "stiff upper lip" should
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not be allowed to endanger people's health. prince william made the comments in an interview with the charity, calm, which is dedicated to preventing male suicide. it comes after prince harry said he sought counselling to come to terms with the death of their mother. the top stories: a senior member of north korea's government has warned his country is prepared to engage in what he called all—out war from day one if the united states takes military action over pyongyang's nuclear programme. a nationwide manhunt is under way in the united states for the suspect who killed an elderly man in ohio and posted a video of the crime on facebook. the man, steve stephens, later confessed
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in another facebook video and went on the run. 0ne in another facebook video and went on the run. one of the front—runners in the french presidential election, marine le pen, has said she would suspend all immigration to the country if she is elected president. she said she wanted to stop what she called a match situation. the conservation charity wwf is warning that almost half of the world heritage sites designated for there importance to nature are threatened by the illegal wildlife trade. it is worth an estimated $19 billion. now it is time for our news review. we begin with the telegraph which reports comments made by a senior member of north korea's government who told the bbc earlier his country is prepared to launch a nuclear strike — all—out war — if the united states decides to attack it. le figaro looks ahead to the first
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round of france's presidential election this coming sunday where marine le pen and her centrist rival, emmanuel macron, are running neck and neck in opinion polls. miss le pen, has said she would suspend all immigration to the country if she is elected president. the independent report on budget airline easyjet, which has apologised to a couple who were thrown off an overbooked flight. the airline has asked for any other passengers who feel they have been misled by staff to get in touch. the times looks at social media giant facebook, which is accused of hypocrisy after it was found to be promoting sham advertisements despite promises to tackle fake news. and finally, the guardian financial pages say hundreds of billions of pounds could leapfrog a generation, passing straight

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